TORONTO, June 28, 2022 (GLOBE NEWSWIRE) -- Shawcor Ltd. (“Shawcor” or the “Company”) (TSX: SCL) today announced it has finalized the sale and leaseback agreement for its Rexdale facility. Net proceeds for the transaction of approximately $49 million exceeded previously communicated expected proceeds and, concurrent with the sale of the facility, the Company has entered into a three-year leaseback agreement. This new arrangement facilitates operational continuity while the Company relocates to a modernized location in the Greater Toronto Area. Proceeds from the property sale will be used to reduce existing indebtedness.
"We continue to see accelerated demand for our products in the Automotive and Industrial segment as the efforts to electrify our society advance,” said Mike Reeves, President and CEO of Shawcor. “This sale will allow us to establish a greener, more modern and efficient production facility to meet the growing demand and to deliver new technology solutions to our customers. This move will also expand opportunities for flexible work arrangements for our employees as we reduce our physical office footprint.”
Shawcor Ltd. is a growth-oriented, global material sciences company serving the Infrastructure, Energy, and Transportation markets. The Company operates through a network of fixed and mobile manufacturing and service facilities. Its three business segments, Composite Systems, Automotive & Industrial and Pipeline & Pipe Services enable responsible renewal and enhancement of critical infrastructure while lowering risk and environmental impact.
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Forward looking information - This news release contains forward-looking information within the meaning of applicable securities laws. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "predict", "estimate" or similar terminology are used to identify forward-looking information. This forward-looking information is based on assumptions, estimates and analysis made in the light of the Company's experience and its perception of trends, current conditions and expected developments, as well as other factors that are believed by the Company to be reasonable and relevant in the circumstances. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from those predicted, expressed or implied by the forward-looking information. The forward-looking information is provided as of the date of this news release and the Company does not assume any obligation to update or revise the forward-looking information to reflect new events or circumstances, except as required by law.
Source: Shawcor Ltd.